One Disadvantage of a Sole Proprietorship as a Form of Business

question 96

Multiple Choice

One disadvantage of a sole proprietorship as a form of business organization is that

• A)sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
• B)sole proprietorships are less efficient than corporations, because they are less specialized in production
• C)owners of sole proprietorships can lose all their personal assets if the business is sued or fails
• D)owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
• E)owners of sole proprietorships generally have very little control over how they operate their businesses

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Definitions:

Time Urgency

The feeling of being rushed or having an insistent need to complete tasks in a limited timeframe, often associated with stress and pressure.

Hostility

Aggressive behavior or attitudes displayed towards others, often characterized by anger, resentment, or antagonism.

Optimistic Bias

The tendency to believe that one is less likely to experience negative events compared to others.

Heart Disease

A broad category of diseases that affect the heart's structure and function, leading to a range of health complications.